How profitable a bank is has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better prepared to withstand economic trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, Bank Independent scored 18 out of a possible 30, beating the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. Bank Independent's most recent annualized quarterly return on equity was 9.11 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $12.6 million on total equity of $140.2 million. The bank had an annualized return on average assets, or ROA, of 0.90 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.